Following rumors earlier this week of an imminent deal, The Wall Street Journal is now reporting the AT&T has reached an agreement to acquire Time Warner. AT&T will reportedly pay between $105 and $110 per share for Time Warner, making the deal worth more than $80 billion. Time Warner shares closed at $89.48 on Friday after spiking on rumors that a merger deal with AT&T could be announced as soon as this weekend. According the WSJ, AT&T and Time Warner’s boards are meeting this afternoon and the final merger proposal could be announced later on Saturday.
As a result of its acquisition of Time Warner, AT&T will dive headfirst into the entertainment business — Time Warner companies include HBO, CNN, TNT and the Warner Bros. film and TV studio. As WSJ noted, this acquisition will be the largest media deal in years, provided it is approved by regulators.
Rumors on Friday suggested that a number of other companies were closely watching negotiations between AT&T and Time Warner, including Apple. Apple had been rumored earlier this year to be considering making a play for Time Warner, and the two companies had even met according to reports that broke late on Friday.
Should it be approved, AT&T’s acquisition of Time Warner will be its biggest deal since buying BellSouth for $85 billion in 2006.